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Business Export Plan - Ocean Blue Trading S.a.S
Business Export Plan - Ocean Blue Trading S.a.S
Introduction
Chapter 1. Choosing The Product
1.1 The Company: Ocean Blue Trading S.A.S
1.1.1 Mission
1.1.2 Vision
1.2 Brochure of Products
1.3 Product and Market Signals
1.4 Products technical sheets
1.4.1 Yam technical sheet
1.4.2 Tahiti Lemon technical sheet
1.5 Data Research
1.5.1 Top exporters of Tahiti Lemon in 2021
1.5.2 Top importers of Tahiti Lemon in 2021
1.5.3 Top destinations of Tahiti Lemon exported by Colombia in 2021
1.5.4 Top exporters of Yam in 2021
1.5.5 Top importers of Yam in 2021
1.5.6 Top destinations of Yam exported by Colombia in 2021
1.6 Product export potential
1.7 The exportable product selected
1.7.1 SCAMPER
1.8 Local Competition Analysis
Agricultural products have found their way into diverse open markets because of their impact
and high demand from countries that lack lands to produce them. In South America,
Colombia stands out as a exporter of farm products like bananas, yams, lemons, mangos,
potatoes, and also grains like coffee. Colombia is aware of its competitive advantage given
the weather conditions and land quality that allow its products to be fresh and delicious to
consume. The local company Ocean Blue Trading S.A.S. is an exporter of mangos, yams, and
Tahiti lemons. It’s placed in Barranquilla and offers such products to foreign buyers.
Therefore, this document will present a business export plan for two chosen products: yam
and Tahiti lemon. The reason behind the election of such products lies in the fact that
European and North American markets demonstrate much appreciation and interest in
acquiring these products and provide their customers with different flavors that stem from
agricultural products that they do not have the chance to produce.
With that said, the present document aims to describe the business export plan of yam and
Tahiti lemon into the United States of America considering numerous variables and factors
that determine the success and wellbeing of the export. It also provides the investors with
financial information and analysis based on different sales scenarios that contribute to the
decision making regarding the competitive environment and the size of the company.
Chapter 1. CHOOSING THE PRODUCT
Ocean Blue Trading S.A.S is an export company, a marketer of fresh vegetables. Their
main focus is exporting agricultural products internationally, therefore, they connect with the
producer and the importer, buying the product locally, and exporting it from Colombia to
supermarkets and other companies.
1.1.1 Mission
Focus their efforts so that their customers receive the best agricultural Colombian products,
which stand out thanks to their colors, flavors, aroma and, that comply with all controls,
standards and phytosanitary records that have been implemented in the country, to provide
absolute guarantee and confidence to the final consumer.
1.1.2 Vision
By 2030, be competitive with quality products, while satisfying the customer's needs.
Having sustainable prices, with which they can position themselves in the market, managing
to increase their profitability and thus reward well-being with equity to all the people who
make it possible that they are the marketers of the confidence of their allies.
1.2 Brochure of products
Ocean Blue Trading S.A.S currently offers 3 products:
● Ñame (Yam):
It is a green fruit, a larger lemon, it has no seeds, and the fruit lasts
longer once harvested.
1.3 Product and Market Signals
Colombia is a country known for exporting primary goods such as fruits, vegetables
(including tubers) and coffee beans. If we analyze which products would be more suitable for
exportation from Colombia, the main topic is the exotic primary goods demanded in foreign
markets. For instance, the products selected for this business export plan are Ñame and
Limón tahití (Yam and Tahiti lemon). To support the selection of the goods, an analysis was
made in relation to market signals, macroeconomic information, the familiarity of the
exporters with the products and other factors.
In relation to Tahiti Lemon, it is estimated that in 2019, the global market of the product
was US$16.5 billion, according to the consulting firm IndexBox. This means an average
annual growth of 2.6% between 2007 and 2019. Between now and 2030, an annual growth in
demand of 1.2% is expected, to reach a global consumption of 22 million tons (today 20
million). In this scenario, in which the largest producers are India, Mexico and China,
Colombia also has opportunities, given the quality of the Tahiti lemon it produces, its free
trade agreements, and the chain between investors and producers. Although it represented
only 0.55% of Colombian agricultural exports in 2020, the Tahiti lemon is the third most
exported fruit, after bananas/plantains (2,164,669.2 tons) and avocados (75,702 tons).
Currently, there is a high demand for lemons to supply the European and North American
markets. This is due to the presence of this fruit in various gastronomic preparations and its
medicinal properties, derived from its high concentration of vitamin C.
On the other hand, Yam's exports have exponentially increased in the past 20 years.
According to preliminary data from the Ministry of Agriculture, yam production in Colombia
in 2019 was 515,847 tons, this crop has managed to stay on the rise for several consecutive
years. Over time, it has become possible to make the best of some of the quality products our
country has to offer. What used to represent around 2 million dollars a year has now become
over 4 million per semester up until today. This has been possible thanks to the efforts of
multiple companies while expanding their horizons to different products that could be
successful in the international market, however, this also results in having competitors with a
higher reach in the international market in potentially available countries. Currently, we can
account for at least 6 major competitors which, in recent years, have made this product an
astounding success, therefore, it’s possible to determine that yams have an extremely high
potential to foreign parties, especially since there are still several unexplored markets that are
yet to be introduced to this product.
1.4 Products Technical Sheets
1.4.1 Yam technical sheet
Concept Description
Geographical origin of The yam (dioscorea) is one of the six genera belonging to the
the product dioscoraceae family and is native to Africa, Asia and America.
In Colombia, yam production has been located specifically in
the Caribbean region.
General description of To start with the planting process of yams, first it’s necessary
the production or to choose small whole tubers or portions of larger tubers in
elaboration process order to plant them. They need to be planted in good quality,
well-drained soil. 42-inch rows need to be made to space each
plant about 18 inches apart from each other, all of these being
planted 2-3 inches deep. Also, these should be planted in mid-
temperate zones, preferably in March-April. Once all this is
properly done, full harvest should be ready within 10-11
months (depending on how favorable the soil and the weather
conditions are.
Yam requires for its cultivation temperatures between 18º C.
and 34º C. and precipitation conditions between 1,200mm. and
1,300mm. and sandy loam soil (sandier than clay), with a
maximum height of 800 meters. above sea level.
Yam harvest should be done between 7 and 12 months after
planting the item. If necessary, the product can be harvested
sometime later, waiting for better prices in the market. Field
per Hectare: 13,600 kg.
Commercial
information,
presentation, and
packaging: type of
packaging, weight per
package or bag
Use and consumption Yams can be consumed in many ways, whether boiled,
instructions steamed, baked, or fried. People often mash cooked yams, add
yam chunks to soups, or use it as an accompaniment to some
roasted meats. It can also be used in the preparation of cakes,
muffins, and bread.
Countries where the The largest importers of yams, according to TradeMap: United
product could be States, Canada, Great Britain, France, Japan, Singapore, and
exported some Caribbean islands
1.4.2 Tahiti Lemon technical sheet
Concept Description
General description of Beginning with the growth process, it’s necessary to ensure
the production or that the seeds are of the highest quality, preferably grown
elaboration process enough to have better chances of successful germination. The
soil must be properly prepared in 2-4-inch-deep holes, using
one seed per hole. The ground in which the seeds are planted
should be well drained with a good source of water, to ensure
better results. After 3-5 weeks of being planted, the seeds
should start to germinate, becoming young seedlings, which
need to be watered regularly and have loads of sunlight; in this
case, the hotter these young seedlings get, the higher the
chances of germination get. Once all this is secured, the
seedlings must be transported to a different location to finish
with its growth process. They must be transported with
extreme care to a location with an abundant sunlight source,
where if provided with the proper water and soil conditions, in
a period around 2-5 years, it should become a fully grown
lemon tree ready for harvesting. Nonetheless, even in optimal
conditions, after a couple of years, the tree could start drying
and decaying, which is why it’s best to have new seeds
prepared.
Use and consumption The product is used mainly in the food industry and for direct
instructions consumption in the preparation of soft drinks, juices, and
sugary nectar. The greatest use of the fruit is in cocktails,
especially in European markets.
Mexico and Spain led the exports of lemons (Tahiti and others), with a little more than
70,000 tons each. Colombia is in 11th place among world exporters. According to experts,
Tahiti lemon exports will "maintain an upward trend", since Colombia will be able to take
advantage of the limitations that some countries have to expand the extension of crops, as is
the case of Mexico, where production "is coming stagnant for a few years." Also, unlike
Central American producers, Colombia does not have seasons, so it can export lemons in
those windows (of time) in which those countries cannot export.
Graph 1: list of importing markets for the product exported by Colombia in 2021. Source:
TradeMap.
The United States of America is the biggest importer of the Tahiti Lemon coming from
Colombia, with almost USD25.000 in 2021. Germany and the Netherlands are closely tied
with around USD7.000, and France right behind with USD6.000. This information confirms
the demand of Tahili Lemon in some countries of Europe and The EE.UU.
Map1: list of importing markets for the product exported by Colombia in 2021. Source: TradeMap.
Colombia's exports represent 1.3% of world exports for this product, its ranking in world
exports is 11, the average distance of importing countries is 6.505 km.
Once again, the major importer of the product, in this case Yam, is the United States of
America with almost 55.000 tons imported in 2021. Canada is the 2nd importer which means
that this product has a high demand in North America. There are two European countries in
the top 5 importers: United Kingdom and France, showing a significant demand from Europe.
Map1: list of importing markets of Yam exported by Colombia in 2021. Source: TradeMap
Colombia's exports represent 3.3% of world exports for this product, its ranking in world
exports is 8, the average distance of importing countries is 4.177 km.
1.6 Product export potential
Product potential
Tahiti lemon exports have increased in the last five years, and it is the third most exported
fruit, after bananas/plantains and avocado. There is also a high demand for lemons in
European and North American markets because it is a fruit widely used in gastronomic
preparations and is famous for its medicinal properties thanks to its high concentration of
vitamin C. Additionally, thanks to the dynamism of the national and international market and
the absence of tariffs on Colombian lemon exports to the United States and the European
Union, experts say that lemon cultivation has a high profitability.
According to Procolombia, Colombia is the fifth country in the world that supplies the most
yams to the United States and the second in Latin America, after Costa Rica. Due to the
growth in sales of this product, it currently exports more than Brazil. The Colombian yam
stands out among its competitors for having better flavor. Likewise, it is a product that,
thanks to its flavor and health benefits as it is a food with a high fiber value, has great
potential abroad, especially in Latin and Asian colonies that are looking for traditional
products of their culture, as well as chefs who want to add something new to their
gastronomic creations.
Product adaptability
In Colombia, due to the lack of seasons, the Tahiti lemon is a crop that has excellent
adaptation in our country, lemons can be exported in those seasons in which other countries
are delayed in production. The yam is characterized by its adaptability to the climatic
conditions of the main agricultural areas in the country, it has high nutritional value and
acceptance by the population for consumption fresh and in processed form.
Substitute
The fresh cut piece of yam could be substituted by frozen chopped yam. This could attract the
attention of restaurants that use the product and need it ready in a short time.
The circle lemon Tahiti could be replaced by squeezed lemon, useful for special recipes.
Combine
Yam could be combined with chia seeds as a healthy option and with chopped cheese for fast
food. Lemon could be combined with coconut as a dessert and in a cherries jar.
Adapt
Due to the importance of digitization in business today, one way to adapt would be to create a
purchase simulator through the website so that potential buyers can make quotes at any time.
Modify
Lemon could be modified as a lemon powder that would be useful for alcoholic drinks,
desserts, and food seasoning.
Yam could be modified as yam flour for the market of healthy food.
Eliminate
Eliminate the peel of the lemon and sell it peel and frozen.
Remove the shell of the yam and sell the peeled yam. Also, avoid the use of pesticides for the
yam harvest.
Reverse
Sell the yam and lemon Tahiti by preorder and buy the products from another region.
1.8 Local competition analysis
Locally, we find the following competitors for Ocean Blue Trading S.A.S:
Ocean Blue Trading pre-selected 3 countries: United States, France, and Canada. Based on
the previous analysis of markets and destination countries, and for a further investigation, two
tools were used: the PESTEL methodology to analyze the political, economic, social,
technological, environmental, and legal conditions of each country and the selection matrix.
2.1.1.1 Political
The United States is a federal republic, based on representative democracy, with three equally
powerful branches of Government, comprising 50 largely self-governing and semi-sovereign
states.
There are other parties such as the Reform Party, the Libertarian Party, the Green Party, the
Constitution Party, the Natural Law Party, the Party for Socialism and Liberation, the
Working-Class Party, and the Working Families Party.
Colombia enjoys a Free Trade Agreement with the United States that entered into force in
May 2012. This FTA has brought countless benefits to the country when carrying out any
type of import or export. One of these benefits is that there is preferential treatment for
multiple agricultural products that are exported to the United States, with a 0% tariff.
According to the Corruption Perceptions Index (CPI) 2021, for the first time, the United
States was left out of the group of 25 countries that lead the index with a score of 67, in a
context characterized by constant attacks against free elections and the opacity of the
electoral campaign financing system.
2.1.1.2 Economic
The United States is the world's largest economy, ahead of China. Key sectors include
agriculture (corn, soy, beef, and cotton); manufacturing of machinery, chemical products,
food, and automobiles; and a booming tertiary market focused on finance, new technologies,
insurance, real estate, rentals, and leases. The American agricultural sector is without doubt
one of the world's largest, with California alone producing more than one-third of the
country's vegetables and two-thirds of its fruits and nuts. Nevertheless, agriculture only
accounts for 0.9% of GDP and employs 1.3% of the workforce (World Bank, latest data
available).
Below are presented some indices, rates and values that give an overview of the US
economy:
The availability of land and educated labor, the absence of landowners, the diversity of
climate, and a market for quality products all contribute to a rapid industrialization of the
United States.
2.1.1.5 Environmental
Regarding climate, The US has 4 seasons. The climate depends on the area. Humid
continental climate to the north, Mediterranean climate to the center and in southern
California, humid subtropical climate to the southwest.
Economic activities impact on the environment; however, the US has made significant
improvements in reducing the negative impact. The most common measures in this
framework are those included in the Paris Climate Agreement and in the Kyoto Protocol,
which encourage good business practices. These measures have come back into force since
the newly elected President Joe Biden reincorporated the country into the agreements of the
Parisian capital.
For instance, on January 27, 2021, executive orders were signed that reduce subsidies to the
oil sector, as well as to other non-renewable fuels. Licenses to exploit gas on federal land
have also been stopped. This measure has been accompanied by a plan to protect nearly a
third of the country's land and sea areas before the 2030s.
2.1.1.6 Legal
The US is a member of the WIPO (World Intellectual Property Organization), and adheres to
the Paris Convention on the protection of intellectual property and TRIPS (Aspects of
industrial property rights related to trade).
The country has laws for patents (Title 35 of the United States Federal Code), trademarks
(United States Trademark Law), intellectual property rights (Copyright Law). And, in
addition, it has signed different agreements related to this environment: Patent Cooperation
Treaty (PCT), Trademark Law Treaty, WIPO Copyright Treaty, WIPO Treaty on
Performance and Phonograms (WPPT).
2.1.2.1 Political
France is a Republic, parliamentary democracy combined with presidential power. The
President of the Republic is the Head of State. He/She is elected by direct universal suffrage
for five years. He/She appoints the Prime Minister and his/her government at the suggestion
of the Prime Minister. The Prime Minister sets the amount of the State's expenses and
revenue and prepares some bills.
Since 2020, the political context has been particularly affected by the Covid-19 pandemic.
The government supported activity via a EUR 100 billion (4% of GDP) recovery plan. The
regional elections of June 2021, characterized by a low turnout of less than 35%, produced a
clear defeat for Le Pen and Macron’s parties, and clear wins for incumbents from the
traditional parties the Republicans (LR, right) and the Socialist Party. Nonetheless, as the
polls predicted, the 2022 presidential elections resulted in a duel between Macron and Le
Pen, amid failed attempts to unify the left. In April 2022, Macron was re-elected for an
additional 5-year term, but abstention reached a 50-year record, and Le Pen managed to
gather 41.46% of the votes.
Colombia maintains an FTA with the European Union (France being a member) that entered
into force in 2013, which means the reduction and elimination of tariffs and non-tariff
barriers to Colombian exports to make our industrial and agricultural products more
competitive. In terms of agricultural goods, there will be duty-free access for key goods in the
export basket such as flowers, tobacco, coffee and processed products, biofuels, palm oil, and
most fruits and vegetables, among others. Sensitive products for Colombia such as rice, corn,
poultry and pork were excluded from the negotiation.
France has obtained 71 points in the Corruption Perception Index published by the
Organization for International Transparency. His score has grown in the last year, then in this
time the perception that the French have regarding corruption in the country's public sector
has improved.
2.1.2.2 Economic
France is ranked as the world’s seventh largest economic power, just behind the United
Kingdom and India. In 2020, France was among the most affected countries from the
COVID-19 pandemic, but the economy started to recover in 2021 thanks to expansive fiscal
support and effective containment of the virus (IMF). The large emergency support package
adopted in 2020, which focused on supporting households and firms by preserving jobs and
providing liquidity, was increased in 2021 in the context of the third partial lockdown.
France is the largest agricultural power in the European Union, accounting for one-fourth of
the EU’s total agricultural production. Nevertheless, the agricultural sector only represents a
very small part of the country's GDP (1.6%) and employs 3% of the population (World
Bank). French agricultural activities receive significant subsidies, especially from the
European Union. Wheat, corn, meats and wine are France's main agricultural products.
Below are presented some indices, rates and values that give an overview of the French
economy:
2.1.2.4 Technological
France’s spending on research and development (% of GDP) was 2.19 in 2018 -most recent
figure-.
In recent years it seems that France has definitely opted for innovation. Precisely artificial
intelligence has been one of the most pampered aspects. The French government announced
in 2018 that it would invest 1.5 billion euros until 2022 in this field. The idea is to generate
new proposals and attract talent to the country. France is also leading, together with Canada,
an effort to promote an ethical approach to the design and use of technology. It has also
fueled the exploration of blockchain. Meanwhile, in an attempt to obtain a certain
technological independence, it has undertaken a tall project: the creation of its own
messaging service.
2.1.2.5 Environmental
France has well defined seasons. In spring, from March to May, temperatures are mild and
the sun comes out often despite frequent rainfall. In summer, from June to September, it can
be hot, especially in the south of France. From October to December, autumn is usually wet.
Winters are cold. Sometimes it snows and temperatures can reach negative values, especially
in high areas.
In 2018, the national plan for the reduction of phytosanitary products "Ecophyto 2+" was
presented and the National Strategy against imported deforestation was launched. Its goal is
to put an end to deforestation caused by French imports of unsustainable forest or agricultural
products by 2030. It applies in particular to soybeans, palm oil, beef and its processed
products, cocoa, rubber, as well as wood and its derivatives.
In January 2021, France approved for the first time a National Strategy for protected areas,
both terrestrial and marine, on the continent and overseas. The goal is to protect, by 2022,
30% of the national territory and maritime areas, with a third under strong protection.
2.1.2.6 Legal
France is a member of the WIPO (World Intellectual Property Organization), and it is
adhered to the Paris Convention on the protection of intellectual property. In France, taking
advantage of intellectual property makes it possible to act against counterfeiters and unfair
practices. But it also creates value, enhances reputation, drives creation and innovations,
increases credibility, and enables expansion into other markets.
The international agreements signed by France regarding trademarks are the Trademark Law
Treaty and the Protocol concerning the Madrid Agreement on the International Registration
of Trademarks. The international agreement that France signed regarding patents is the Patent
Cooperation Treaty (PCT).
2.1.3.1 Political
Canada’s political system is a parliamentary democracy, with its own social and political
institutions. The economy is closely linked to that of the United States, but Canada has its
own economic institutions. Canada also has a well-developed social safety-net to protect
citizens from financial inequities.
As of 2013 Canada is ranked in the 84th percentile for Political Stability and Absence of
Violence/Terrorism and in the 97th percentile for Government Effectiveness according to
The Worldwide Governance Indicators (WGI) project.
Furthermore, Colombia maintains an FTA with Canada that entered into force in 2011, which
not only contemplates the liberalization of trade in goods, but also includes commitments on
trade in services, investment, environmental and labor issues related to trade. One of the
benefits of this FTA is that multiple agricultural products are exported to Canada with a 0%
tariff.
Regarding corruption, Canada has obtained 74 points in the Corruption Perceptions Index
published by the Organization for International Transparency. Its score has decreased in the
latest report, which means that Canadians perceive an increase in corruption in the country's
public sector.
2.1.3.2 Economic
Canada has the 11th largest economy in the world, based on nominal Gross Domestic
Product. A member of both the Organization for Economic Cooperation and the Group of
Seven, Canada’s is considered one of the most stable economies in the world. In 2015,
according to the Forbes Global 2000 List, Canada is ranked 8th with a total of 52 companies
on the list.
The country’s main industries vary from region to region, however like most developed
nations it is heavily weighted in the service sector. Other important industries include oil &
gas, logging, automobile and aircraft manufacturing, and fishing. Canada also relies on its
tourism industry and has a developing high-tech sector and film, television, and entertainment
industry.
Also, Canada has entered into Free Trade Agreements with several nations and is negotiating
additional agreements. Import and export are contributing factors to the economy, and
although Canada does business with many nations, the largest trading partner by far is the
United States.
Below are presented some indices, rates and values that give an overview of the Canadian
economy:
Apart from this, multicultural trends are growing in Canada. More than 18 percent of the
Canadian population are immigrants from around the world.
2.1.3.4 Technological
Canada is home to the world's largest tech hubs, growing and attracting innovative talent
from across the globe. Its diverse, highly educated, and growing tech talent pool continuously
attracts investments from global businesses, including the world's 10 largest technology
companies.
In fact, Canada’s spending on research and development (% of GDP) was 1,54 in 2019 -most
recent figure-.
2.1.3.5 Environmental
Canada has a varied climate. Towards the north it is extremely cold, but the population is
located (for the most part) towards the south where it is warmer. On the west coast it is rainy
and temperate, it hardly snows; maximum temperatures in summer: 22° and in winter 7°.
Near Toronto it is continental type: cold and snowy winters and hot and humid summers.
The Government of Canada is at the forefront of international efforts to protect the seas. To
meet its commitments under the Ocean Plastics Charter, Canada is taking ambitious national
action that includes a vision to achieve zero plastic waste by 2030 and allow plastics to stay
in the economy and out of the environment. The initial phase of the action plan on zero
plastic waste, launched in 2019, focuses on activities to increase the recovery of plastics in
the economy, such as establishing extended producer responsibility programs, providing
support for innovations and the infrastructure to better manage plastics, increase the
responsible use and recycling of single-use products, develop standards for the use of
recycled content, among others. A second phase, underway this year, will focus on increasing
consumer, business and institutional awareness, reducing pollution in water activities,
supporting science and addressing environmental waste.
2.1.3.6 Legal
Canada adheres to three major WIPO treaties: the Madrid Protocol, the Nice Agreement, and
the Singapore Treaty. Thanks to a simple designation procedure, foreign companies and
trademark owners who decide to sell their goods and services in Canada will be able to apply
for the protection of their trademarks through the Madrid System, driving innovations,
increasing credibility, and enabling expansion into other markets.
Canada: 3,81
France: 3,86
United States: 4,15
Due to its high scores in terms of global imports of yam and lemon, growth of imports,
population, GDP, climate, proximity, and commercial relations (categories that we consider
most appropriate to export), the United States was the best option compared to the other two
countries.
Chapter 3: MARKET SEGMENTATION
Now that a country has been selected to do our exports, we move on to what market segment
we will be working with. Of course, before we start doing business, that target market needs
to be properly identified, for which it’s necessary to consider several factors previous to
making that decision.
3.3.1 Seniors/Veterans
These adults born from 1945 and prior tend to spend more on health care, they are likely to
consume healthy food products which include fruits and tubers, taking into account the
benefits for their health (with minerals, vitamins, nutrients and more).
3.3.3 Generation X
From the years 1965 to 1979, they are between 43 and 57 years old. They probably have
grown-up kids which allows them to go out and drink, try new food, without having to take
care of children, so they would consume lemon and yam (indirectly) at a bar or restaurant,
and at home while cooking their food.
3.3.4 Generation Y
Better known as “Millennials” (1980 - 2000), they are the largest U.S generation and they
are most likely to be the biggest consumers of lemon and yam. Because they are between the
ages of 42 and 22, it is common for them to have kids, be pregnant, go out to bars, eat at
restaurants, and in some cases: try to consume products rich in vitamins. Also, they are in
charge of buying food and other products at the supermarket, including citric fruits and tubers
on their diet, and providing that to their family.
3.3.5 Generation Z
AKA “Centennials” from 1997 to 2012, they’re the digital natives of all the generations.
They are between the ages of 21 and 10, so they probably consume lemon and yam indirectly
(provided by their parents), but they are able to watch recipes through the internet using these
products.
3.4 Evaluating results and conclusions
Having determined which generation could consume/use our product and some of the
possible benefits or applications each one of these have for it, we need to determine what our
final customer will be like, which is why we need to evaluate the generational information we
have to do so.
Regarding some lifestyle choices previously made in order to maintain health above most
reasons, we were able to find:
• Women who have diets rich in fibers and vitamins, and other nutrients.
• Children on weight-loss programs.
• Elder people seek healthy balance on the meals they eat.
• Local marketers with a wide variety of vegetables.
Finally, in all these groups, there was an overall expectation or tendency when it came to
what they required or what drove them to purchase our products, to which we found:
• Women who have diets rich in fibers and vitamins, and other nutrients.
• Children on weight-loss programs.
• Elder people seek healthy balance on the meals they eat.
• Local marketers with a wide variety of vegetables.
Normally, people expect to buy yam in good aesthetic conditions, which means that they
want it fresh and healthy, and not pricey.
3.4.1.3 Advantages
When it comes to discussing benefits found on our products, we found most people can ingest
the products under any circumstances and people will find them healthy and pleasant to
consume. Since these products are commonly consumed worldwide, we believe people’s
habits and living conditions do not constitute any barriers that prevent them from consuming
both lemon and yam. Also, regardless of religions, ethics, and ethnicity, they can be normally
accepted as it has not been shown the existence of restrictions on their purchase and
consumption. Furthermore, the accessibility of purchasing yam and lemon in local markets,
whether they’re big or small businesses, gives people the freedom of choosing the products
according to their needs and purchasing power. Thanks to the few social and economic
restrictions to access both of these products in terms of location and price, we can expect
good feedback and commercial behavior.
3.4.1.4 Disadvantages
Even though there are plenty of positive aspects involving our product, imported products
may be overlooked from products from other countries due to the variety of options available
in the market and the needs of consumers. Also, there is no evidence that demonstrates any
disadvantages on the consumption of our products. One possible barrier could be having
some sort of allergies surrounding their ingestions, but that is quite rare. Given the fact that
many companies are importing yam and Tahiti lemon to the USA, the competition may
increase, and it may be complicated for small businesses to establish their products
successfully in the market. This does not suppose any sort of disadvantages. However, some
people may prefer a specific type of yam or lemon considering their origins. For example,
Asian people may prefer Japanese yam to Colombian yam, and so with other products.
This profile represents the target market of citrus fruits and tubers (this is a good fit
agroindustry businesses such as Ocean Blue Trading S.A.S who exports Lemon and Yam).
This includes a description of the primary customer, taking into consideration their
demographic, psychographic, geographic, and behavioral characteristics.
4.1 Diamond Yam and Tahiti Lemon exported to Miami, Florida (USA)
After finding proper information that supports our market analysis and business proposal to
trade in the USA, Ocean Blue Trading, as a small company, has broadened its horizons by
entering the market in the north region of the continent. Given the company's size, it has
decided to start by exporting five tons of each product so it can start gaining a wider market
share over time.
4.1.1 Forecast of demand
4.1.1.1 Yam
According to Veritrade (2021), Colombia has small participation in the exports of yam to
the USA. The percentage of yam imports from Colombia into The USA is around 2.9. With
that said, it’s critical to take into consideration that the number of tons to trade cannot be
supposed to be as immense as the company is small and the product itself is just gaining
importance and demand in the market. With a profit margin of 15% -in the first year-, Ocean
Blue Trading will aim to penetrate this market by being aware that it’s necessary to begin
with fewer profits as the company starts to get more demands and recognition abroad. On the
other hand, there are several companies in The USA that import yams mostly from Costa
Rica, Ghana, and Jamaica, which represents an opportunity for penetrating the country with
the product and start creating a more competitive environment that concerns the Colombian
yam. The previous information is backed by TradeMap (2021). Additionally, there were no
labor costs or indirect costs that constituted the produce of the merchandise since Ocean Blue
Trading acquires its products directly from the producers, which means that it’s only in
charge of marketing and exporting the product to clients overseas.
Taken from Veritrade (2021)
In the above graphic, it can be demonstrated that Colombia’s exports of yam are not as
many as other countries. Considering this, we consider that the company must start off by
exporting 5 tons of yam and increase the number over time as it will be continuously
demanded in this market.
4.1.1.2 Tahiti Lemon
Unlike diamond yam, the Tahiti lemon imports to the USA are mainly from Mexico.
Based on Veritrade (2021), The United States imports around 96% of its Tahiti lemon from
Mexico, and the remaining percentages are distributed between countries like Colombia
(3,1%), and other Caribbean countries like Guatemala, Honduras, and the Dominican
Republic. As previously stated, this product is purchased finished as well from the farmers
and is taken to export according to the demand of the chosen market.
For the importation of fresh fruits or vegetables, phytosanitary regulations apply, which
means that the products must be certified in the countries of origin and present the document
certifying that the product left the exporting country in healthy conditions, free of insects or
insects. diseases, for this in Colombia the marketers or distributors of plant products must
have the ICA registration. Proexport recommends that exporters of vegetables or fresh
agricultural products take into account the following aspects:
● Ensuring that products are safe.
● Know systems and procedures that ensure traceability.
● Ensure that the products are free of organisms harmful to plant health.
● Ensure that the products comply with the maximum limits of chemical residues
present in food. For this, the ICA has a booklet in which this information can be
verified and ensure that the wooden packaging complies with the NIMF No. 15
regulation.
● Comply with the requirements on organic products in case you want to sell your
products under this denomination.
For the importation of products of plant origin, it is the commitment of the importer in the
destination country to ensure compliance with the requirements established by the USDA,
which is in accordance with the international codex alimentarius. These foods may also be
subject to controls according to a plan that takes into account potential risks. Such controls
may take place in accordance with 44 the national laws of the different States at the national
level throughout the territory of the United States.
However, these products are obtained from different suppliers because of the environmental
conditions that enrich their quality and make them
exquisite enough. With that explained, the company
will assume the cost of transporting such products from
their farms directly to the port of Cartagena, where they
will be put on pallets and then into the container to be
taken abroad. The lemon will be taken from Lebrija,
Santander, to the port, and the yam, from El Carmen de
Bolívar.
4.3.1 Incoterm
As to the incoterm, we decided to trade on CIF since it allows the company to control the
logistics chain and guarantee the entrance of the product successfully and risk-free. In this
case, the cargo will be transported by sea and using one container only, as stated before. Once
the merchandise arrives at the port, the client will have to pay for the unload and customs
documentation and permission in its country.
Under CIF (short for “Cost, Insurance and Freight”), the seller delivers the goods, cleared for
export, onboard the vessel at the port of shipment, pays for the transport of the goods to the
port of destination, and also obtains and pays for minimum insurance coverage on the goods
through their journey to the named port of destination.
The buyer assumes all risk once the goods are on board the vessel for the main carriage;
however, they don’t take on any costs until the freight arrives at the named port of
destination.
Seller’s Obligations
Buyer’s Obligations
The marketing systems that are used are participation in fairs, business conferences and
establishing direct contact with commercial agents of agri-food products. Yam and Tahiti
Lemon producers and marketers must receive logistical, promotional, and financial support
from the entities that support the country's export sector, such as ProColombia, Bancoldex
and Agroexpo, among other yam and Tahiti lemon promotions through technological means
and communication, such as the Internet, television, to achieve penetration and greater
positioning of the product in the market.
It is important to stay aware of the growth on the export market for these products since other
countries have already established theirs in the same country, and therefore, the chances of
choosing Colombian-made products over others more recognized may be at risk. Ocean Blue
Trading S.A.S. must position itself as a competitive exporter of these products by providing
quality, safety, and good prices to catch larger audiences.
References
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%20Sectoriales%20%C3%B1ame.pdf
https://www.tlc.gov.co/getattachment/acuerdos/vigente/union-europea/1-
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%7cTOTAL%7c
https://www.veritradecorp.com/es/paises/COL#paises